Allstate CEO Edward Liddy said Thursday that Allstate made a decision to scale back its homeowners coverage on the Gulf Coast after Hurricane Katrina because the storm caused it to take an "unacceptable" loss of $1.5 billion in the third quarter.
Liddy says Allstate will continue helping thousands of its customers in Louisiana and the surrounding area. But he says his company must reduce its exposure in the region because of the risk of additional heavy catastrophic losses.
Allstate is the nation's second-largest personal lines insurer after State Farm.
It similarly didn't renew coverage for 95,000 homeowners in hurricane-battered Florida in 2004 and also moved quickly to raise rates there.